Monday, September 12, 2011

Obama and FDR



FDR faced 20 % unemployment during the Depression , he created 4 million jobs in 2 months.

In his jobs speech to the nation on Sept. 8, President Barack Obama overstated his case for bipartisan support for each "kind of" proposal in his new jobs stimulus bill. While it's true there is much common ground in Obama's proposal, several of the planks in the plan, called the American Jobs Act, have gotten only token Republican support in the past, while being opposed by an overwhelming majority of Republicans.President Obama's $825 billion economic-stimulus package needs a lot less PWA and a lot more CWA. Harking back to FDR who faced an even greater problem The PWA was the Public Works Administration, led by Harold Ickes Sr. The CWA was the Civil Works Administration, led by Harry Hopkins. Both were New Deal agencies created in 1933 to get Americans quickly back to work at a time when unemployment reached 25 percent, its highest point in U.S. history. The PWA failed. The CWA succeeded.
In his speech to a joint session of Congress, Obama laid out a $447 billion plan that aims to jump-start employment. It includes tax cuts for employers and employees, tax cuts for businesses that hire new employees, unemployment assistance, money to build roads and bridges and money to states for teachers, firefighters and police officers. It's a plan, Obama said repeatedly, that should get support from Democrats and Republicans alike.
Obama, Sept. 8:There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that's been supported by both Democrats and Republicans — including many who sit here tonight.
Obama, Sept. 8:Every proposal I've laid out tonight is the kind that's been supported by Democrats and Republicans in the past.
In a press gaggle aboard Air Force One on Sept. 9, White House Press Secretary Jay Carney repeated the talking point, saying, the American Jobs Act "as you know, is comprised of a series of measures that have historically garnered bipartisan support.
The implication was clear: Republicans who don't support the bill are simply being obstructionists. But is it true that Republicans have supported "the kind of" proposals laid out by Obama?
Some of them, for sure.
Republican House Majority Leader Eric Cantor acknowledged as much in a blog post on Sept. 9.
"From the trade agreements, tax relief for small businesses, regulatory relief, and unemployment benefits programs, there are a lot of areas of commonality between the House Republicans' jobs plan and the proposals the [p]resident discussed last night," Cantor said.
But the evidence for Republican support of some of the other measures in Obama's plan is thin. In some cases, we are talking about only a few Republicans who bucked the overwhelming opposition of their party.
Aid for Teachers and Firefighters?
For example, part of the Obama plan is to invest $35 billion to prevent the layoffs of up to 280,000 teachers, police officers and firefighters, and to hire tens of thousands more.
In December 2009, House Democrats passed the Jobs for Main Street Act that included $24 billion for state and local governments to retain teachers and police officers. (Not unlike what is included in Obama's plan now.) It did not include a tax credit for small businesses that create jobs.
It passed the House 217 to 212, but not a single Republican voted for it. The measure never took hold in the Senate, however.
In March 2010, six House Republicans joined 211 Democrats to help pass a pared-down version of the bill, then called the HIRE Act. The $17.5 billion bill included a temporary payroll tax break to companies that hire jobless people. Notably, however, it was opposed by 166 House Republicans. Two weeks later, 11 Republican senators helped pass a Senate version of the bill. But it also was opposed by a majority of Senate Republicans - 28.
On Aug. 5, 2010, two Republican senators, Olympia Snowe and Susan Collins, both of Maine, crossed party lines and voted for a bill that included $10 billion for state governments to spare thousands of teachers whose jobs were imperiled by strapped state budgets. But 39 Republicans voted against it.
In short, there has been scant Republican support for increased federal aid to states to retain and hire teachers, police and firefighters.
Money to Modernize Schools?
The Obama plan also includes $25 billion to modernize at least 35,000 public schools, as well as $5 billion to modernize community colleges. It's true that in June 2008, 27 House Republicans voted for a $6.4 billion bill to modernize and make repairs to public schools. The bill passed the House 250 to 164, with all the votes against it coming from Republicans.
And on Sept. 17, 2009, 16 House Republicans joined 246 Democrats to beat back an amendment (H. Amdt. 425) that would have cut $6.6 billion for school construction funding from the Student Aid and Fiscal Responsibility Act. However, 155 Republicans and six Democrats voted in favor of the amendment.
Again, that's not much evidence of Republican support for increasing federal spending on school construction.
As for Obama's plan to spend $50 billion on highways, transit, rail and aviation, the White House notes that before the stimulus passed in early 2009, Republicans, led by Sens. John McCain, Lindsey Graham, John Thune, Richard Burr and Mel Martinez, offered their own alternative stimulus plan - one that was half the cost of the Democrats' plan, but included $65 billion in state grants to build and repair bridges and roads.
We asked House Speaker John Boehner's spokesman Michael Steel via e-mail whether all of the kinds of proposals in Obama's plan enjoyed support from Democrats and Republicans. He replied:
Steel, Sept. 9: Not even close. For starters, the plan includes direct aid to states, 'modernizing' schools, spending on 'shovel ready projects, rehabbing homes, expanding the internet, etc. Those are the same 'kind of proposal' that made up the President's stimulus bill. As you know, every single Republican in the House voted against that bill. Do Republicans oppose infrastructure and the internet? Of course not. But we've not supported this 'kind of proposal' as a means to boost the economy.
The president has yet to say exactly how he would pay for his plan. However, he promised to release next week a deficit plan that would cover the cost of the American Jobs Act and more. That plan, he said, would include tax increases for the wealthiest Americans, a proposal that has been adamantly opposed by Republicans.Again, some of the proposals in Obama's plan — tax relief for small business and regulatory relief, for example — have clearly gotten support from Republicans in the past. But when Obama claimed that all the "kinds of" proposals in his plan have gotten Republican support in the past, he overplayed his hand. Some of the spending proposals in Obama's plan have gotten scant Republican support when similar measures were proposed in the past, and many were overwhelmingly opposed by a majority of Republicans.


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NOTES & COMMENTS:
FDR WHAT HE DID & WHY IT WORKED.
The strategy behind Obama's stimulus bill resembles that of the PWA. Like the stimulus, the PWA tackled unemployment indirectly by spending money largely through private contractors. That handicap—worsened by Ickes' cautious-to-a-fault management style—resulted in only $110 million of the program's authorized $3.3 billion getting spent during the program's crucial first year. Frustrated by Ickes' poky pace, Roosevelt yielded to the pleas of his relief administrator, Harry Hopkins, to help get unemployed workers through the coming winter by putting them directly onto the federal payroll. Roosevelt had been reluctant to create a federal work program for fear of alienating organized labor. Hopkins overcame that worry by pointing out that Samuel Gompers, founder of the American Federation of Labor, had in 1898 proposed essentially the same idea. Roosevelt diverted not quite one-third of Ickes' PWA budget to Hopkins' CWA with the goal of putting to work 4 million people. As a percentage of the population, that would be the equivalent of putting 10 million people to work today. In his first weekly radio address, Obama pledged that the stimulus package would "save or create 3 to 4 million jobs over the next few years." (His budget director estimates that 75 percent of the money will be spent within 18 months.) Hopkins got there within two months.Obama 'promised' this in 2009 with his first stimulus .
The government employed people to carry out a range of different tasks. These projects included the Works Projects Administration (WPA), the Civilian Conservation Corps (CCC), the National Youth Administration (NYA), Farm Security Administration (FSA), the National Recovery Administration (NRA) and the Public Works Administration (PWA). Other schemes adminstered by the Works Projects Administration included the Federal Writers Project (1935-39) Federal Theatre Project (1935-39) and the Federal Art Project (1935-43).

As well as trying to reduce unemployment, Roosevelt also attempted to reduce the misery for those who were unable to work. One of the bodies Roosevelt formed was the Federal Emergency Relief Administration which provided federal money to help those in desperate need.

Other legislation passed by Roosevelt included the Agricultural Adjustment Act (1933), National Housing Act (1934), the Federal Securities Act (1934). In August 1935 the Social Security Act was passed. This act set up a national system of old age pensions and co-ordinated federal and state action for the relief of the unemployed.

During the 1936 presidential election, Roosevelt was attacked for not keeping his promise to balance the budget. The National Labour Relations Act was unpopular with businessmen who felt that it favoured the trade unions. Some went as far as accusing Roosevelt of being a communist. However, the New Deal was extremely popular with the electorate and Roosevelt easily defeated the Republican Party candidate, Alfred M. Landon, by 27,751,612 votes to 16,681,913.

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